UOB Group’s FX analysts, Quek Ser Leang and Peter Chia, have shared their insights on the GBP/USD currency pair. According to their analysis, the current price movements of the pair are likely part of a range – trading phase, with the pair expected to fluctuate between 1.2740 and 1.2860 in the near term.
24-Hour Perspective: A Surprising Turnaround
In their previous assessment, the analysts had predicted that the British Pound (GBP) could edge lower to 1.2675 before stabilizing, and any further decline was unlikely to reach 1.2580. However, the market had other plans. On the day in question, the GBP/USD pair traded within the range of 1.2725 to 1.2812, and it ended the day 0.33% higher at 1.2766. This unexpected upward movement indicates that the pair is currently in a range – trading pattern, oscillating between the 1.2740 – 1.2860 levels.
1 – 3 Weeks Outlook: Uncertainty Lingers for the Pound
Looking at the medium – term, there has been little change in the analysts’ view since their update on April 8 when the GBP/USD was at 1.2760. The sharp drop in the value of the Pound late last week and early this week seemed excessive. At present, there are no clear signs of the Pound stabilizing. The analysts believe that the GBP could face further decline against the US Dollar (USD). However, it remains uncertain whether it will reach the next major support level at 1.2580.
On the upside, if the GBP/USD pair manages to breach the 1.2950 level (previously, the’strong resistance’ level was at 1.3000), it would be a strong indication that the Pound’s downward trend may be coming to an end. This would signal a potential shift in market sentiment and could lead to a more bullish outlook for the GBP/USD pair.
For investors, these insights from UOB Group are crucial. The expected range – bound movement in the near term provides opportunities for short – term traders to profit from the pair’s oscillations within the 1.2740 – 1.2860 range. However, the long – term uncertainty regarding the Pound’s decline and the potential for a reversal above 1.2950 means that long – term investors need to exercise caution and closely monitor market developments.
Related Topics:
GBP/USD Price Forecast: Strong Gains Persist Near Multi-Month Peak Above 1.3000s
GBP/USD Shows Bullish Leanings Near 1.2930 as USD Softens
